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How to buy Discover Financial Services (DFS) stock

Learn how to easily invest in Discover Financial Services stock.

Discover Financial Services
NYSE: DFS - USD
CREDIT SERVICES
$124.49
-$0.25 (-0.20%)

Discover Financial Services is a credit services business based in the US. Discover Financial Services shares (DFS) are listed on the NYSE and all prices are listed in US Dollars. Discover Financial Services employs 17,600 staff and has a trailing 12-month revenue of around 0.00.

How to buy shares in Discover Financial Services

  1. Compare share trading platforms.Use our comparison table to help you find a platform that fits you.
  2. Open your brokerage account. Complete an application with your details.
  3. Confirm your payment details. Fund your account.
  4. Research the stock. Find the stock by name or ticker symbol – DFS – and research it before deciding if it's a good investment for you.
  5. Purchase now or later. Buy your desired number of shares with a market order or use a limit order to delay your purchase until the stock reaches a desired price.
  6. Check in on your investment. Optimize your portfolio by tracking your stock.

Discover Financial Services stock price (NYSE: DFS)

Use our graph to track the performance of DFS stocks over time.

Discover Financial Services shares at a glance

Information last updated 2021-07-23.
Latest market close$123.38
52-week range$47.27 - $127.65
50-day moving average $120.85
200-day moving average $105.59
Wall St. target price$128.53
PE ratio 13.9391
Dividend yield $1.76 (1.4%)
Earnings per share (TTM) $8.89

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The value of any investment can go up or down depending on news, trends and market conditions. We are not investment advisers, so do your own due diligence to understand the risks before you invest.

Is it a good time to buy Discover Financial Services stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Discover Financial Services price performance over time

Historical closes compared with the close of $123.38 from 2021-06-04

1 week (2021-07-17) N/A
1 month (2021-06-28) 3.65%
3 months (2021-04-28) 10.63%
6 months (2021-01-24) N/A
1 year (2020-07-24) N/A
2 years (2019-07-24) N/A
3 years (2018-07-24) N/A
5 years (2016-07-24) N/A

Is Discover Financial Services under- or over-valued?

Valuing Discover Financial Services stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Discover Financial Services's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Discover Financial Services's P/E ratio

Discover Financial Services's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 14x. In other words, Discover Financial Services shares trade at around 14x recent earnings.

That's relatively low compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Discover Financial Services's PEG ratio

Discover Financial Services's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 0.4474. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Discover Financial Services's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Discover Financial Services financials

Revenue TTM $8 billion
Operating margin TTM 46.65%
Gross profit TTM $5.4 billion
Return on assets TTM 2.47%
Return on equity TTM 25.62%
Profit margin 34.79%
Book value $36.27
Market capitalisation $37.8 billion

TTM: trailing 12 months

Shorting Discover Financial Services shares

There are currently 5.3 million Discover Financial Services shares held short by investors – that's known as Discover Financial Services's "short interest". This figure is 17.8% up from 4.5 million last month.

There are a few different ways that this level of interest in shorting Discover Financial Services shares can be evaluated.

Discover Financial Services's "short interest ratio" (SIR)

Discover Financial Services's "short interest ratio" (SIR) is the quantity of Discover Financial Services shares currently shorted divided by the average quantity of Discover Financial Services shares traded daily (recently around 2.0 million). Discover Financial Services's SIR currently stands at 2.66. In other words for every 100,000 Discover Financial Services shares traded daily on the market, roughly 2660 shares are currently held short.

However Discover Financial Services's short interest can also be evaluated against the total number of Discover Financial Services shares, or, against the total number of tradable Discover Financial Services shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Discover Financial Services's short interest could be expressed as 0.02% of the outstanding shares (for every 100,000 Discover Financial Services shares in existence, roughly 20 shares are currently held short) or 0.0174% of the tradable shares (for every 100,000 tradable Discover Financial Services shares, roughly 17 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Discover Financial Services.

Find out more about how you can short Discover Financial Services stock.

Discover Financial Services's environmental, social and governance track record

Environmental, social and governance (known as ESG) criteria are a set of three factors used to measure the sustainability and social impact of companies like Discover Financial Services.

When it comes to ESG scores, lower is better, and lower scores are generally associated with lower risk for would-be investors.

Discover Financial Services's total ESG risk score

Total ESG risk: 28.56

Socially conscious investors use ESG scores to screen how an investment aligns with their worldview, and Discover Financial Services's overall score of 28.56 (as at 12/31/2018) is pretty good – landing it in it in the 39th percentile of companies rated in the same sector.

ESG scores are increasingly used to estimate the level of risk a company like Discover Financial Services is exposed to within the areas of "environmental" (carbon footprint, resource use etc.), "social" (health and safety, human rights etc.), and "governance" (anti-corruption, tax transparency etc.).

Discover Financial Services's environmental score

Environmental score: 7.61/100

Discover Financial Services's environmental score of 7.61 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector terms of its environmental impact, and exposed to a lower level of risk.

Discover Financial Services's social score

Social score: 19.64/100

Discover Financial Services's social score of 19.64 puts it squarely in the 8th percentile of companies rated in the same sector. This could suggest that Discover Financial Services is a leader in its sector when it comes to taking good care of its workforce and the communities it impacts.

Discover Financial Services's governance score

Governance score: 16.82/100

Discover Financial Services's governance score puts it squarely in the 8th percentile of companies rated in the same sector. That could suggest that Discover Financial Services is a leader in its sector when it comes to responsible management and strategy, and exposed to a lower level of risk.

Discover Financial Services's controversy score

Controversy score: 1/5

ESG scores also evaluate any incidences of controversy that a company has been involved in. Discover Financial Services scored a 1 out of 5 for controversy – the highest score possible, reflecting that Discover Financial Services has managed to keep its nose clean.

Environmental, social, and governance (ESG) summary

Discover Financial Services was last rated for ESG on: 2019-01-01.

Total ESG score 28.56
Total ESG percentile 38.78
Environmental score 7.61
Environmental score percentile 8
Social score 19.64
Social score percentile 8
Governance score 16.82
Governance score percentile 8
Level of controversy 1

Discover Financial Services share dividends

20%

Dividend payout ratio: 19.71% of net profits

Recently Discover Financial Services has paid out, on average, around 19.71% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 1.4% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Discover Financial Services shareholders could enjoy a 1.4% return on their shares, in the form of dividend payments. In Discover Financial Services's case, that would currently equate to about $1.76 per share.

While Discover Financial Services's payout ratio might seem low, this can signify that Discover Financial Services is investing more in its future growth.

Discover Financial Services's most recent dividend payout was on 2 June 2021. The latest dividend was paid out to all shareholders who bought their shares by 18 May 2021 (the "ex-dividend date").

Discover Financial Services share price volatility

Over the last 12 months, Discover Financial Services's shares have ranged in value from as little as $47.2687 up to $127.65. A popular way to gauge a stock's volatility is its "beta".

DFS.US volatility(beta: 1.82)Avg. volatility(beta: 1.00)LowHigh

Beta is a measure of a share's volatility in relation to the market. The market (NYSE average) beta is 1, while Discover Financial Services's is 1.8248. This would suggest that Discover Financial Services's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Discover Financial Services overview

Discover Financial Services, through its subsidiaries, operates as a digital banking and payment services company in the United States. It operates in two segments, Digital Banking and Payment Services. The Digital Banking segment offers Discover-branded credit cards to individuals; and other consumer products and services, including private student loans, personal loans, home loans, and other consumer lending, as well as deposit products, such as certificates of deposit, money market accounts, IRA certificates of deposit, IRA savings accounts, checking accounts, and sweep accounts. The Payment Services segment operates the PULSE network, an automated teller machine, debit, and electronic funds transfer network; Diners Club International, a payments network that issues Diners Club branded charge cards and/or provides card acceptance services; and Discover Network that processes transactions for Discover-branded credit and debit cards, as well as offers payment transaction processing and settlement services. Discover has strategic network alliance agreement with Arab Financial Services. The company was incorporated in 1960 and is based in Riverwoods, Illinois. .

Frequently asked questions

What percentage of Discover Financial Services is owned by insiders or institutions?
Currently 0.539% of Discover Financial Services shares are held by insiders and 87.792% by institutions.
How many people work for Discover Financial Services?
Latest data suggests 17,600 work at Discover Financial Services.
When does the fiscal year end for Discover Financial Services?
Discover Financial Services's fiscal year ends in December.
Where is Discover Financial Services based?
Discover Financial Services's address is: 2500 Lake Cook Road, Riverwoods, IL, United States, 60015
What is Discover Financial Services's ISIN number?
Discover Financial Services's international securities identification number is: US2547091080
What is Discover Financial Services's CUSIP number?
Discover Financial Services's Committee on Uniform Securities Identification Procedures number is: 254709108

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